Quote from: Skydaddy on June 27, 2014, 05:07:55 PM

Quote from: mstrongbow on June 27, 2014, 04:24:54 PM

Quote from: hoeslayer on June 27, 2014, 03:04:25 PM

If the difficulty goes up and u have 900 gh and receive .01 as reward per block found does the reward for your work drop as the difficulty goes up?

Correct. That is why a cryptocurrency miner must continually increase their hashrate

Please explain where my stupidity is misguided. My impression was that if the pool hashrate did not change, but the difficulty went up (due to the target number of blocks "found" occured earlier than the target time) that your "reward" per block would not change, but the number of blocks the pool would resolve would be lower due to the increased difficulty, thereby reducing your "daily reward". That being said, the reason that the Cryptocurrency miner would have to continually increase their hashrate (buy more equipment or OC their current stock) would be to increase the pool hashrate such that the number of blocks "found" by the pool would increase to the point where the "Number of blocks found" x "the reduced reward$" would equal the previously established "Daily reward", thereby maintaining the status quo. Further detailed explaination is anticipated with great eagerness!

If your hash rate stays the same but the pool hash rate goes up then - your reward per round goes down

If slush's pool hash rate remains the same but the overall network hash rate goes up - your reward remains the same but slush finds less blocks

If your hash rate, the pool hash rate and the network hash rate ALL remain the same, but difficulty goes up - your reward remains the same but slush finds less block...